Yushu’s 5 Billion Yuan Abyss

Recent regulations require the Red Cross, China Charity Federation and 13 other national funds to direct their Yushu earthquake donation funds to the Qinghai provincial government. From Caixin:

While fund raising is part of the battle in disaster relief, ensuring those resources reach the people in need is the most challenging part. Wang Zhenyao, former director of the Department of Disaster and Social Relief of the Ministry of Civil Affairs said that local governments do not allocate disaster relief funds efficiently.

“Government investment all goes to construction of infrastructure. It lacks the targeted precision for small projects that the victims need. If charitable organizations with private donations can handle these projects, they can offer a lot of personalized, flexible services that can increase the well-being of victims.”

However, two recently-released policies require the Red Cross, China Charity Federation (CCF) and other funds to directly appropriate the donations they receive to the Qinghai provincial government, who will then oversee the reconstruction efforts.